The Net Zero Journey
Start by measuring your carbon footprint and understanding your risks and opportunities.

What are scope 1, 2, 3 greenhouse gas (GHG) emissions?

There are three categories of GHG emissions:
Scope 1 encompasses direct emissions from sources that are owned or controlled by a company.

Scope 2 are indirect emissions resulting from the generation of electricity, heat, steam, or cooling purchased by a company.

Scope 3 are all indirect emissions (not included in Scope 2) that occur in the value chain of the company.
  • Start by measuring your carbon footprint and understanding your risks and opportunities.

    What are scope 1, 2, 3 greenhouse gas (GHG) emissions?

    There are three categories of GHG emissions:

    Scope 1 encompasses direct emissions from sources that are owned or controlled by a company.

    Scope 2 are indirect emissions resulting from the generation of electricity, heat, steam, or cooling purchased by a company.

    Scope 3 are all indirect emissions (not included in Scope 2) that occur in the value chain of the company.

  • Commit to reach Net Zero GHGs as soon as possible in line with global efforts to limit warming to 1.5℃. Set interim targets and define the strategy needed to achieve both the interim and longer-term targets.

    What is Net Zero?

    Net Zero refers to a state in which the GHGs going into the atmosphere are balanced by removal out of the atmosphere. It is international scientific consensus that in order to mitigate global warming, global net human-caused emissions of carbon dioxide need to fall by about 45% from 2010 levels by 2030 and reach Net Zero around 2050.

  • The avoidance or reduction of GHG emissions should be prioritised in the journey towards Net Zero.

    What is the role of renewable energy and Renewable Energy Certificates (RECs)?

    Renewable sources including solar, wind and geothermal play a critical role in climate action as they do not emit GHG into the atmosphere when generating energy. A REC is a market-based instrument that certifies the bearer owns one megawatt-hour (MWh) of electricity generated from a renewable energy resource. Companies can reduce emissions by generating or purchasing power from renewable sources, or by purchasing RECs to offset the power generated from non-renewable energy sources.

  • Offsetting is a widespread tool used in efforts to achieve Net Zero emissions. Use high quality offsets that are verifiable and correctly accounted for, and have a low risk of non-additionality, reversal, and the creation of negative unintended social or environmental harms.

    What are carbon offsets and credits?

    A carbon offset broadly refers to a reduction in GHG emissions – or an increase in carbon storage – that is used to compensate for emissions that occur elsewhere. A carbon credit is a transferable instrument certified by an independent certification body, that represents an emission reduction of one metric tonne of carbon dioxide (or GHG equivalent).

  • Engage stakeholders on your Net Zero journey. Communicate transparently your current emissions, targets and the strategy needed to achieve your goals. Share actions taken so that progress can be tracked and leadership demonstrated.

    How to communicate transparently about your carbon footprint?

    The organisational, geographical and emissions scope of your carbon footprint should be clearly specified, and standardised and internationally-recognised calculation methodologies used. Disclose the breakdown by scope of your emissions and by category of emissions.

Insights from PwC

It is imperative that you have the latest insights and knowledge when you are accelerating towards your own net zero journey. Partnering with PwC, our knowledge contributor, we bring to you the latest trends and insights in corporate sustainability.

A rising tide of green capital

Time and again, we’ve seen excitement build around new technologies—the railroad, electricity, the personal computer, fiber optics, e-commerce. Early investors place risky bets on seemingly oddball ideas. As a few gain traction, the money (and the hype) follows. As a market develops, large investors—venture capitalists, private equity firms, Wall Street—pile in and help scale up technology.


Accelerating Sustainable Development in the 4th Industrial Revolution

The technologies of the 4th Industrial Revolution (e.g. Artificial Intelligence, Blockchain and the Internet of Things, among others) are rapidly becoming mainstreamed, enabling transformation of entire systems and networks. Widespread change can be seen across companies, industries, countries and society as a whole. These profound shifts, touching nearly every sector, from incumbents being disrupted to entirely new 4IR-enabled business models, are creating new markets at an expedited speed and scale.


Progress and peril on the road to net zero

The path to decarbonization is uneven and daunting, but we have the capacity to spur change. Reaching net zero, a state in which our global systems emit only as much carbon as they can absorb, will be the biggest collective action humanity has ever undertaken. After all, 84% of the world’s energy still comes from fossil fuels. Achieving net zero will require a full rewiring of the global economy.


Financing the Net Zero Transition

Reaching net zero, a state in which our global systems emit only as much carbon as they can absorb, will be the biggest collective action humanity has ever undertaken. After all, 84% of the world’s energy still comes from fossil fuels. Achieving net zero will require a full rewiring of the global economy.


Achieving net zero infrastructure

Affordability of the global infrastructure transition should be at the top of world leaders’ agenda. Tackling climate change means radically transforming the vast network of infrastructure which makes the modern world go. Big-ticket items such as power generation, transport, buildings and industry make up more than 60% of global greenhouse gas emissions. But, as the coalition of 197 nations strive to meet the Paris Agreement to decarbonise the global economy by 2050, the speed, scale and cost of the transition required to ‘green’ these assets are posing serious challenges to policymakers, business leaders and transnational organisations.


The rise of the circular economy

Tackling climate change means radically transforming the vast network of infrastructure which makes the modern world go. Big-ticket items such as power generation, transport, buildings and industry make up more than 60% of global greenhouse gas emissions. But, as the coalition of 197 nations strive to meet the Paris Agreement to decarbonise the global economy by 2050, the speed, scale and cost of the transition required to ‘green’ these assets are posing serious challenges to policymakers, business leaders and transnational organisations.